EasyJet said it would increase capacity and passengers numbers at Gatwick by
around 10pc over the next year

Gatwick has agreed a seven-year pricing deal with its biggest customer, easyJet, after being freed up by the UK's airports regulator to strike agreements directly with airlines.

EasyJet said it would increase capacity and passengers numbers at Gatwick by around 10pc in the year to March 2015 and is in consultation with the airport to move all of its operations to the north terminal - similar to British Airways' base at Heathrow's Terminal 5.

Gatwick currently accounts for about a quarter of easyJet's network, the equivalent of 14m-15m passengers a year.

The carrier, known for its bright orange livery, said it also intends to increase its number of take-off and landing slots at Gatwick and will start deploying larger aircraft from the airport.

EasyJet last year secured approval from shareholders to buy 135 new Airbus A320 planes, despite the objection of its biggest investor Sir Stelios Haji-Ioannou.

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The airline would not offer any guidance on price but it is likely a deal has been struck at a level considerably lower than the RPI inflation minus 1.6pc a year average set by the regulator for Gatwick.

Carolyn McCall, chief executive of easyJet, said: "This agreement gives eastJet certainty on passenger charges over the next seven years and a clear incentive to continue to grow. Our shared ambition is for Gatwick to be both our biggest and best airport."

The move will give Gatwick a boost as it seeks to persuade the government-backed Airports Commission that it should be allowed to build a second runway.

The airport earlier this week argued that it serves a wider range of airlines than its rival Heathrow, which is campaigning for a third runway. Stewart Wingate, chief executive of Gatwick, argues that Heathrow prices out low cost airlines, which are the fastest-growing segment of the UK aviation market.